BILL NUMBER: AB 1674	CHAPTERED  07/21/00

	CHAPTER   146
	FILED WITH SECRETARY OF STATE   JULY 21, 2000
	APPROVED BY GOVERNOR   JULY 21, 2000
	PASSED THE ASSEMBLY   JULY 6, 2000
	PASSED THE SENATE   JUNE 29, 2000
	AMENDED IN SENATE   JUNE 21, 2000
	AMENDED IN SENATE   JUNE 8, 2000
	AMENDED IN SENATE   MARCH 22, 2000
	AMENDED IN SENATE   MARCH 9, 2000
	AMENDED IN ASSEMBLY   JANUARY 18, 2000
	AMENDED IN ASSEMBLY   JANUARY 3, 2000

INTRODUCED BY   Committee on Utilities and Commerce (Wright (Chair),
Pescetti (Vice Chair), Calderon, Campbell, Frusetta, Mazzoni, Reyes,
Vincent, and Wesson)

                        MARCH 15, 1999

   An act to amend Sections 54999.2 and 54999.4 of, and to add
Section 54999.35 to, the Government Code, to amend Section 13076 of
the Public Resources Code, to add Sections 10004.5, 12702.5, and
16402.5 to the Public Utilities Code, and to add Section 22651.5 to
the Water Code, relating to public utilities, and declaring the
urgency thereof, to take effect immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 1674, Committee on Utilities and Commerce.  Capital facilities
fees.
   (1) Existing law authorizes the imposition of capital facilities
fees for the construction or expansion of public utility facilities
on public entities, as prescribed.  Existing law authorizes a public
agency to impose or increase an existing capital facilities fee in
excess of a specified amount after a specified agreement has been
reached between the 2 agencies.  Fees in excess of a specified amount
are refundable.
   This bill would require (a) specified notification to affected
school districts, county offices of education, community college
districts, California State universities, the University of
California, or a state agency prior to enacting or changing capital
facilities fees, and (b) any judicial action or proceeding that
protests or challenges a rate or charge that contains a capital
facilities fee or that seeks the refund of capital facilities fees
imposed on or after July 1, 2000, to be commenced within 120 days of
the effective date of an ordinance, resolution, or motion enacting or
changing the capital facilities fee unless the specified notice and
disclosure requirements have not been followed.  Under the bill, that
120-day procedural limitation would not apply if those notice and
disclosure requirements have not been followed.  The bill would also
revise provisions regarding the burden of producing evidence required
of a public agency, as prescribed.
   (2) Existing law authorizes a municipal corporation to acquire,
own, operate, or lease any public utility, with powers as prescribed.
  Existing law authorizes a specified resort improvement district to
produce, purchase, and sell electrical power.  Existing law provides
for the creation and operation of public utility districts, as
prescribed, and generally allows a district to sue and be sued in all
actions and proceedings, in all courts and tribunals of competent
jurisdiction.  Existing law authorizes the board of an irrigation
district to sue, appear, and defend in the name of the district.
   This bill would require any judicial action or proceeding to
attack, review, set aside, void, or annul an ordinance, resolution,
or motion fixing or changing a rate or charge for an electric
commodity or electric service furnished by a district and adopted on
or after July 1, 2000, to be commenced within 120 days of the
effective date of that ordinance, resolution, or motion, except as
specified.
   (3) The bill would declare that it is to take effect immediately
as an urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 54999.2 of the Government Code is amended to
read:
   54999.2.  Any public agency providing public utility service on or
after July 21, 1986, may continue to charge, or may increase, an
existing capital facilities fee, or may impose a new capital
facilities fee after that date, and any public agency receiving a
public utility's service shall pay those fees so imposed, except as
provided in  Sections 54999.3 and 54999.35.
  SEC. 2.  Section 54999.35 is added to the Government Code, to read:

   54999.35.  (a) This section shall apply only to a local publicly
owned electric utility or other public agency providing public
electric utility service to a public agency in its service territory,
as specified in subdivision (b).  "Local publicly owned electric
utility" as used in this section means all of the following:
   (1) A municipality or municipal corporation operating as a "public
utility" furnishing electric commodity or electric service as
provided in Section 10001 of the Public Utilities Code.
   (2) Any special district furnishing electric commodity or electric
service, including, but not limited to, any of the following:
   (A) A resort improvement district formed pursuant to Division 11
(commencing with Section 13000) of the Public Resources Code.
   (B) A municipal utility district formed pursuant to Division 6
(commencing with Section 11501) of the Public Utilities Code.
   (C) A public utility district formed pursuant to the Public
Utility District Act set forth in Division 7 (commencing with Section
15501) of the Public Utilities Code.
   (D) An irrigation district formed pursuant to the Irrigation
District Law set forth in Division 11 (commencing with Section 20500)
of the Water Code.
   (3) A joint powers authority that includes one or more of these
agencies that furnishes electric commodity or electric service over
its own or its member's electric distribution system.
   (b) The imposition of a capital facilities fee for electric
utility service on any school district, county office of education,
community college district, the California State University, the
University of California, or state agency by a public agency
providing public utility service shall be subject to all of the
following:
   (1) Where necessary to defray the actual construction costs of
that portion of a public utility facility actually serving a public
agency, any public agency providing public utility service on or
after July 21, 1986, may continue to charge any capital facilities
fee that was imposed prior to that date on the public agency using
the public utility service and that was not protested or challenged
pursuant to law prior to January 1, 1987, or increase that capital
facility fee in an amount not to exceed the percentage increase in
the Implicit Price Deflator for State and Local Government Purchases,
as determined by the Department of Finance, and any public agency
shall pay any capital facilities fees authorized by this subdivision.

   (2) Any public agency proposing to initially impose a capital
facilities fee or to increase an existing capital facilities fee in
excess of the amount set forth in paragraph (1), may do so after
agreement has been reached between the two agencies through
negotiations entered into by both parties.
   (3) Upon request of the affected public agency or upon increase
pursuant to paragraph (1), the public agency imposing or increasing
the fee shall identify the amount of the capital facilities fee.  The
public agency imposing or increasing the capital facilities fee has
the burden of producing evidence to establish all of the following:
   (A) The capital facilities fee is nondiscriminatory.
   (B) The amount of the capital facilities fee does not exceed the
amount necessary to provide capital facilities for which the fee is
charged.
   (C) The capital facilities fee complies with the requirements set
forth in paragraph (1).
   (4) A public agency proposing to enact or increase capital
facilities fees under this section shall notify by certified mail any
school district, county office of education, community college
district, California State University, University of California, or
state agency located within its service area that is an electric
utility customer of the public agency, not less than 30 days prior to
the date of any hearing set to consider an ordinance resolution, or
motion enacting or increasing a capital facilities fee.  The notice
shall state the date, time, and place of any hearing.  The notice
shall also state that the public agency proposes to impose a new
capital facilities fee or to increase an existing capital facilities
fee in an amount that either complies with the requirements of
paragraph (1) or in an amount that exceeds capital facilities fees
permissible under paragraph (1).
   (5) The notice described in paragraph (4) shall designate an
individual at the public agency who shall make available, upon
request, for inspection by any school district, county office of
education, community college district, California State University,
University of California, or state agency located within its service
area, the information relied upon in setting the fee or increase,
including the methodology used to calculate and allocate the capital
expenditures giving rise to the fee or increase, and an
identification of the capital facilities that contribute to the fee
or increase, as well as any other information relevant to determining
whether or not the fee or increase complies with the provisions of
this section.  The affected school district, county office of
education, community college district, California State University,
University of California, or state agency shall designate the
individual who is to receive the notice, and the public agency
providing public utility service shall direct the notice to that
individual.  If no specific individual is designated, then the notice
shall be addressed to the billing address of the affected facility.
In the case of an affected state agency, after an initial notice has
been delivered by certified mail to the billing address of the
affected state agency facility, subsequent notice may be directed to
the billing address of the state agency by first-class mail, unless
the affected state agency specifically requests that the notice be
directed to a designated individual by certified mail.  A subsequent
notice to other affected public agency facilities shall be by
certified mail directed to the billing address of the affected
facility.
   (6) Any judicial action or proceeding to protest or challenge a
rate or charge that contains a capital facilities fee or to seek a
refund of any capital facilities fee imposed on or after July 1,
2000, shall be commenced within 120 days of the effective date of the
ordinance, resolution, or motion enacting or increasing the rate,
charge, or capital facilities fee, provided that the notice and
disclosure requirements of paragraphs (4) and (5) have been followed.
  If the notice and disclosure requirements of paragraphs (4) and (5)
have not been complied with, the 120-day limitation period is not
applicable to the judicial action or proceeding to protest or
challenge a rate or charge or to seek the refund of any capital
facilities fee imposed on or after July 1, 2000.
   (7) No limitation period in Chapter 9 (commencing with Section
860) of Title 10 of Part 2 of the Code of Civil Procedure may bar any
judicial action, proceeding or appeal protesting or seeking a refund
of a rate, charge, capital facilities fee or capital facilities fee
component of a rate or charge imposed on or after April 1, 2000, if
the notice and disclosure requirements of paragraphs (4) and (5) have
not been followed.
  SEC. 3.  Section 54999.4 of the Government Code is amended to read:

   54999.4.  Any capital facilities fees paid prior to  March 24,
1988, and not protested or challenged pursuant to law on or before
January 1, 1987, shall not be subject to refund, except  for capital
facilities fees paid after July 21, 1986, by a public agency subject
to Section 54999.3  that are in excess of the maximum amount
authorized by Sections 54999.3 and 54999.35.  Agreements entered into
prior to or after March 24, 1988, for the payment of capital
facilities fees or capacity charges shall be effective.
  SEC. 4.  Section 13076 of the Public Resources Code is amended to
read:
   13076.  (a) Notwithstanding any other provision of this chapter,
and in addition to any other powers conferred thereby, Resort
Improvement District Number 1, in the County of Humboldt, may
produce, purchase, and sell electrical power within the boundaries of
the district.
   (b) Except as provided in subdivision (c), any judicial action or
proceeding against the district to attack, review, set aside, void,
or annul an ordinance, resolution, or motion fixing or changing a
rate or charge for an electric commodity or an electric service
furnished by the district and adopted on or after July 1, 2000, shall
be commenced within 120 days of the effective date of that
ordinance, resolution, or motion.
   (c) The statute of limitations set forth in subdivision (b) does
not apply to any judicial action or proceeding filed pursuant to
Chapter 13.7 (commencing with Section 54999) of Part 1 of Division 2
of Title 5 of the Government Code to protest or challenge a rate or
charge or to seek the refund of a capital facilities fee if the
notice and disclosure requirements of Section 54999.35 of the
Government Code have not been followed.
  SEC. 5.  Section 10004.5 is added to the Public Utilities Code, to
read:
   10004.5.  (a) Except as provided for in subdivision (b), any
judicial action or proceeding against a municipal corporation that
provides electric utility service, to attack, review, set aside,
void, or annul an ordinance, resolution, or motion fixing or changing
a rate or charge for an electric commodity or an electric service
furnished by a municipal corporation and adopted on or after July 1,
2000, shall be commenced within 120 days of the effective date of
that ordinance, resolution, or motion.
   (b) This section does not apply to any judicial action or
proceeding filed pursuant to Chapter 13.7 (commencing with Section
54999) of Part 1 of Division 2 of Title 5 of the Government Code to
protest or challenge a rate or charge or to seek the refund of a
capital facilities fee if the notice and disclosure requirements of
Section 54999.35 of the Government Code have not been followed.
  SEC. 6.  Section 12702.5 is added to the Public Utilities Code, to
read:
   12702.5.  (a) Except as specified in subdivision (b), any judicial
action or proceeding against a district that provides electric
utility service, to attack, review, set aside, void, or annul an
ordinance, resolution, or motion fixing or changing a rate or charge
for an electric commodity or an electric service furnished by a
district and adopted on or after July 1, 2000, shall be commenced
within 120 days of the effective date of that ordinance, resolution
or motion.
   (b) The statute of limitations specified in subdivision (a) does
not apply to any judicial action or proceeding filed pursuant to
Chapter 13.7 (commencing with Section 54999) of Part 1 of Division 2
of Title 5 of the Government Code to protest or challenge a rate or
charge or to seek the refund of a capital facilities fee if the
notice and disclosure requirements of Section 54999.35 of the
Government Code have not been followed.
  SEC. 7.  Section 16402.5 is added to the Public Utilities Code, to
read:
   16402.5.  (a) Except as provided in subdivision (b), any judicial
action or proceeding against a district that provides electric
utility service, to attack, review, set aside, void, or annul an
ordinance, resolution, or motion fixing or changing a rate or charge
for an electric commodity or an electric service furnished by a
district and adopted on or after July 1, 2000, shall be commenced
within 120 days of the effective date of that ordinance, resolution,
or motion.
   (b) This section does not apply to any judicial action or
proceeding filed pursuant to Chapter 13.7 (commencing with Section
54999) of Part 1 of Division 2 of Title 5 of the Government Code to
protest or challenge a rate or charge or to seek the refund of a
capital facilities fee if the notice and disclosure requirements of
Section 54999.35 of the Government Code have not been followed.
  SEC. 8.  Section 22651.5 is added to the Water Code, to read:
   22651.5.  (a) Except as specified in subdivision (b), any judicial
action or proceeding against a district to attack, review, set
aside, void, or annul an ordinance, resolution, or motion fixing or
changing a rate or charge for an electric commodity or an electric
service furnished by the district and adopted on or after July 1,
2000, shall be commenced within 120 days of the effective date of
that ordinance, resolution, or motion.
   (b) The statute of limitations specified in subdivision (a) does
not apply to any judicial action or proceeding filed pursuant to
Chapter 13.7 (commencing with Section 54999) of Part 1 of Division 2
of Title 5 of the Government Code to protest or challenge a rate or
charge or to seek the refund of a capital facilities fee if the
notice and disclosure requirements of Section 54999.35 of the
Government Code have not been followed.
  SEC. 9.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to encourage competition and promote rate stability in
the evolving electric marketplace as soon as possible, it is
necessary that this act take immediate effect.
